Telstra blankets Asia with Ethernet service

NETWORK WORLD NEWSLETTER: CAROLYN DUFFY MARSAN'S ISP NEWS REPORT
09/28/05
Today's focus: Telstra blankets Asia with Ethernet service

Dear networking.world@gmail.com,

In this issue:

* Telstra launches Virtual Private LAN Service in five Asian
countries
* Links related to ISP News Report
* Featured reader resource
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Today's focus: Telstra blankets Asia with Ethernet service

By Carolyn Duffy Marsan

Australian ISP Telstra is expanding its presence in Asia with
the announcement of wide-area Ethernet services in five
countries: Japan, Taiwan, China, Singapore and Hong Kong. The
service, dubbed VPLS for Virtual Private LAN Service, launched
in early September.

Telstra says it is the first ISP to offer an international
Ethernet service in so many cities in Asia.

"In markets such as Tokyo, Metro Ethernet is highly pervasive.
The same is true for Hong Kong and Singapore, where the
geographies are tight," says John Paitaridis, regional director,
Telstra Global Business Asia. "A lot of our customers are asking
us for Ethernet-to-Ethernet type of connectivity
internationally. As a result of that, we've introduced VPLS,
which is a one-of-a-kind service in Asia."

Telstra plans to offer VPLS connectivity from the U.S. to Asia
soon. Telstra says it will introduce the service in U.S. cities
that have a significant amount of Metro Ethernet already
installed.

"We hope to have something available in the U.S. within three to
six months," Paitaridis says. Telstra plans to offer VPLS in
Australia during the same time frame.

Telstra is marketing VPLS as an alternative to MPLS, which
requires customers to turn over the management of their IP
addressing and routing to an ISP. With VPLS, customers retain
responsibility for their own IP address management and routing.

"For a lot of customers that prefer the do-it-yourself type
model and have issues with moving to MPLS because of the need to
hand over control of key characteristics of their networks, this
is something that's quite appealing," Paitaridis says.

VPLS is less expensive than MPLS because it requires no customer
premise equipment and fewer services from the carrier. Telstra
says that on average VPLS will be 20% less expensive than MPLS
services and as much as 40% less expensive than frame relay or
ATM.

VPLS also is easier to scale than alternative services.
Customers can buy VPLS in 1M bit/sec increments up to 100M
bit/sec. With leased lines, customers have to commit to 1.54M
bit/sec T-1 or 45M bit/sec T-3 service, with nothing in between.

"With international Ethernet, we only charge [customers] for
what they use," Paitaridis says. "That can be very cost
effective vs. a multiplexed T-1."

Telstra is targeting customers who are migrating away from older
technologies such as ATM and frame-relay to VPLS. Although
Telstra would not name its beta customers for VPLS, the ISP said
it is seeing interest from manufacturers, logistics and
transportation companies.

Telstra says its two beta customers were Japanese-based
corporations. One firm is using VPLS to replace leased lines,
while the other is replacing frame relay.

"VPLS provides a migration path for frame-relay and ATM, which
is also a Layer 2 service," Paitaridis says. "This is a very
good migration path to IP without going to a fully routed MPLS
environment."

Telstra says customers can get VPLS services within six weeks,
about the same time as it takes to get local access in many
Asian countries.

Telstra officials say China in particular seems ripe for VPLS.
The service is available in three Chinese cities: Shanghai,
Guangzhou and Shenzhen.

"We think it's going to be a big winner for us in China,"
Paitaridis says. Metro Ethernet is not as pervasive in China, so
we provide a local loop option like multiplexing."

The top 5: Today's most-read stories

1. Skype: Hazardous to network health?
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3. Commuting costs drive up telecommuting
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4. McAfee,?Omniquad top anti-spyware test
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5. The rise of the IT architect
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_______________________________________________________________
To contact: Carolyn Duffy Marsan

Carolyn Duffy Marsan is a senior editor with Network World and
covers emerging Internet technologies and standards. Reach her
at mailto:cmarsan@nww.com
_______________________________________________________________
This newsletter is sponsored by Nokia
Empower Your Mobile Enterprise

Nokia believes that business mobility will fundamentally change
the way work gets done-and for the better. To allow the entire
organization to get the most from this paradigm shift in
productivity, Nokia Enterprise Solutions focuses on delivering
increased efficiency through enhanced mobility. Learn more by
downloading this white paper today!
http://www.fattail.com/redir/redirect.asp?CID=115981
_______________________________________________________________
ARCHIVE LINKS

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